June 16, 2023

Vishnu Chemicals spent approx. Rs. 100 crore towards growth Capex on a consolidated basis to expand its Chromium chemicals capacity by 10,000 tonnes per annum and a brownfield expansion to introduce a niche speciality chemical in Barium Chemicals

2023 global trends in Chromium and Barium chemicals portfolio?

The extent to which Chromium and Barium chemicals are used in the production of everyday items is astonishing. Our products are a critical ingredient across the pharmaceuticals, consumers, and industrial sector. From acting as strong oxidants in pharmaceuticals to creating a shining and reflective surface in tiles and ceramics or the silver finish on faucets, towel holders, hardware – door knobs or handles, Chromium chemicals add to the aesthetic appeal of any vehicle that gives a good feel be it the shining logo, stylish front grills, premium leather seats or sturdy engines and pistons or be it colours, that don’t fade away.

Chromium chemicals find their way in the production of super alloys by the world's most complex manufacturing powerhouses, which allows jet engines to operate in high-temperature, high-stress, and chemically oxidising environments. In addition, it is further used in aircraft to protect seal components against galling, corrosion, and wear, which is catalysing the growth of the industry.

The demand for Chromium and Barium chemicals is robust as it is a critical input in 12+ applications. Markets across Asia Pacific, Europe, and North America are aided by the growth in the construction and infrastructure industry, which is boosting the demand for Barium chemicals.

How has Vishnu Chemicals performed during FY 2022-23? Plans for Barium and Chromium portfolio in FY 2023-24?

FY 2021-22 was a successful and eventful year at Vishnu Chemicals as we crossed an important milestone of Rs. 1,000 crore in sales. It is even more satisfying that we delivered good growth in both Indian and International markets. Over the years, Vishnu Chemicals has nurtured the chemistry and mastered complex chemical processes by overcoming the gestation period of stabilisation. Deep process knowledge enables the company to track how a reaction unfolds and speed up execution to achieve greater operational excellence.

We feel good about our ability to deliver growth based on our historical performance. Over the years, our product portfolio has expanded and so has our customer base. We are focused on the fundamentals of improving efficiencies and optimum utilization of capacities which should enable us to deliver robust performance. Going forward it will essentially make our initiatives RoI (Return on Investment) accretive and deliver the benefits of finest quality of specialty chemicals to our global customers.  

Our unwavering focus on manufacturing has led the company to be one of the most efficient producers in our chemistry. In FY 2022-23, we have entered the prestigious club of companies with more than Rs. 100 crores of profit after tax. With one quarter to go, our 9M FY 2022-23 consolidated PAT is Rs. 101 crores, already 24% higher than previous fiscal FY 2021-22 PAT.

Since FY 2016-17, we have delivered a PAT CAGR of over 50% by meaningful capacity addition and improving our manufacturing processes that combine environmental and economic benefits through comprehensive use of resources and ability to handle complex reaction media. In FY 2023-24, we have bold targets set for production and in both chemistries, we aim to produce the highest volume ever in FY 2023-24.

Revenue mix is 50:50 with respect to outside India and within India. Do you see any change in revenue mix in FY 2024-25?

We are focused on balancing our sales mix geographically to continue mitigating the market risk. We also like to maintain a 50:50 mix of sales across India and international markets as it gives us access to world’s leading markets like Japan, Australia, Spain, New Zealand, USA, and more.

Vishnu Chemicals manufactures specialty chemicals and is a dependable supplier for customers across industries like pharmaceutical, sports surface paints, automobiles, ceramics, tiles, glass, refractory, and wood preservatives. The company's products and processes conform to global standards, which is a testimony of product quality and reliability. We look forward to maintaining the same revenue mix in FY 2024-25.

The company is focused on backward and forward integration initiatives leading to self-sufficiency and improved operating leverage. How will this initiative help in Barium, Chromium, and any new portfolio?

Our key tenet has been to manufacture high performance specialty chemicals that stand the test of time and quality, which instils huge confidence in our global customer base. With manufacturing being the core focus, we constantly study data from customer inquiries to create our production plan. Our forward integration helps us to reinvent and innovate to cater to a new range of applications and consequently, enhance our business prospects. Similarly, our backward integration facility gives us the ability to effectively use co-products and generate raw materials for indigenous consumption. A major step towards sustainability was the commissioning of backward integration at our flagship plant in Visakhapatnam.

Capex invested in FY 2022-23 and projects where investment was made? Capex plans for FY 2023-24?

From a total capacity of 1,10,000 tonnes per annum in FY 2020-21, we will operate at 1,70,000 tonnes per annum in FY2023-24, making us the largest producers in India in our chemistry. In FY 2022-23, we spent approximately Rs. 100 crore towards growth Capex on a consolidated basis to expand our Chromium chemicals capacity by 10,000 tonnes per annum and a brownfield expansion to introduce a niche speciality chemical in Barium Chemicals. In FY 2023-24, we will be open to explore organic and inorganic expansion to further expand our margins and ROCE.

The company is focusing on brownfield expansion to aid Barium portfolio diversification and it is expected to be commissioned in H1 FY24. How will this expansion help Vishnu Chemicals?

The ongoing brownfield expansion will aid portfolio diversification in our Barium chemistry. We will be the only producers of this chemical in India giving us a first mover advantage to tap existing customers who are currently relying on imports for their material needs. This will help us gain market share in India, Europe, and North America, which is generally a growing market for these products. 

Upon commissioning, we will be the largest producers of Barium chemicals in India giving us an opportunity to meet Indian consumption needs while tapping our existing network of international clientele for export sales. From 40,000 tonnes of capacity in Barium chemicals in January 2022, we will operate on an installed capacity of 90,000 tonnes.

On the R&D front, the company is focusing on launching newer grades and compounds for newer applications. Explain?

The company's improvisation strategy is underpinned by a strong commitment to research, development, and innovation. The company has built a world class infrastructure and emerged as ‘a company of choice’ in the industry owing to constant learning and continuous improvement.

Chromium chemicals are key to manufacturing superalloys required for critical applications in the aerospace, defence, land-based gas turbines to name a few. We are the producers of a range of Chromium chemicals and have pivoted into a variety of grades to meet the requirement of our customers globally. Led by addition of Chromium derivative products into its product portfolio since 2019, Vishu Chemicals average capacity utilization has increased from around 60% in FY16-18 to around 80% since FY19.

There is an ongoing expansion plan to introduce ‘Precipitated Barium Sulphate’ with a capacity of 30,000 TPA which is expected to be commissioned by H1 FY24. Globally renowned researchers have created the world’s whitest paint using Barium chemical. This paint has entered the Guinness Book of World Records for its ability to reflect 98.1% of sunlight. Hence, it cools outdoor surfaces by more than 4.5°C thus cutting down the consumption of electricity and use of energy. Climate change is a real thing today and this innovation is path-breaking as it delivers results to homes and offices in the most cost effective manner.

We are really excited about this development as we ourselves are currently expanding to manufacture the best quality Precipitated Barium Sulphate under our Barium Chemicals portfolio. Our product is an inorganic compound and is a high-purity, synthetic additive that is produced in a carefully controlled manufacturing process. And, it contains almost no impurities, the whiteness is higher than natural Barium Sulphate so it can be used as the filler of pure white powder coating, and the finish glossiness can reach 95 degrees.

Initiatives taken by Vishnu Chemicals for enhancing process safety across all facilities to make operation intrinsically safe?

People are at the heart of our business. Their health, safety and well-being have been and continue to be a top priority for us. With safety at the workplace being paramount, health and safety standards are continuously assessed, identified, and uplifted. With an intensive focus on safety, we have achieved a decline in Total Recordable Injury Rate (TRIR). We firmly believe that we can progress only as fast as the successful implementation and acceptance of our safety programmes and initiatives. Our aim is to build a more mature and sustainable safety culture that will allow us to increase our productivity and operational discipline and facilitate highly competitive organic growth.

Sustainability roadmap of Vishnu Chemicals and key sustainability initiatives?

Sustainability is at the centre of all business processes at our company. The company considers it is essential to protect the Earth and limit natural resources as well as the health and wellbeing of every person especially employees/workers of the company. The company strives to achieve safety, health and environmental excellence in all aspects of its business activities. Acting responsibly with a focus on safety, health, and environment to be part of the company’s DNA.

In line with the ‘Go Green’ philosophy, the company is continuously adopting new techniques to eliminate and minimise environmental impact. Various projects have been implemented by the company to use alternate sources of energy wherever possible.

The company does not just talk about ‘Sustainability’, it follows in true letter and spirit; sustainability is about how we operate. We strive to promote a circular economy and deliver societal value. Vishnu Chemicals approach is to innovate, collaborate, and educate communities.

The company takes required measures to mitigate impact to various environmental aspects like air quality, water, and noise. The company focuses on conservation of natural resources: minerals, water, and energy. Our philosophy for sustainability stems from individual action and collective responsibility. The company’s plants are equipped with modern machinery operated with sustainable practices. Our teams regularly conduct awareness programs and impart training to all employees on sustainability practices.

In 2022, the flagship plant was integrated to capture and recover flue gases and use it as a vital input for its production in a sustainable eco-friendly manner. We are only one of the few companies globally to have this infrastructure.

Major CSR initiatives being undertaken by Vishnu Chemicals in FY2022-23 and plans for FY 2023-24?

We believe society is an inseparable stakeholder in our journey. Our CSR vision is aimed at achieving progress and value creation for all. In furtherance of our efforts to have long term impact on large communities in general, the company spent majority of its CSR funds on an initiative to build old age homes by Krishna Foundation to transform lives of elderly through care and support. The facility provides nutritious food, hygienic and comfortable environment, recreation activities among others. In FY 2023-24, we will continue to spend the CSR towards community service and providing economic independence and shelter to the needy.

June 15, 2023

2023 global trends in Performance Surfactants and Specialty care products?

Globally, we are seeing a shift in consumers’ preference towards products that not only deliver functionality but also promote healthy lifestyle and focus on sustainability. Most FMCG companies are focusing on premiumization of their portfolio because of this change in consumer behaviour. For e.g. people are incorporating skincare regimes as part of their daily personal care routines. Similarly, consumers are gradually shifting from laundry bars and powders to premium powders and laundry liquids. This has led to a positive momentum in demand for premium products in many markets across the globe. This shift is expected to change the product mix of performance surfactants while boosting the need for specialty care products in 2023.

How would you rate the company’s financial performance in FY 2022-23? Forecast for FY 2023-24?

FY 22-23 has been a year of challenges on the macro-economic and geopolitical front. We had significant demand cutbacks and deteriorating economies. Despite the multifold challenges, we have consistently grown and achieved our FY 22 profit in the first 9 months of FY 23. For FY 23-24, we aspire for a volume growth of 6-8%, EBITDA growth higher than volume growth and PAT growth higher than EBITDA growth.

Performance of the company in different segments - Performance Surfactants and Specialty care in FY 22-23. What’s the future roadmap?

While we did face demand cutbacks largely driven by the volatile macro-economic factors for major part of the financial year, with raw material prices stabilizing and most geographies having undertaken the necessary inventory corrections, we expect the degrowth in Performance Surfactants volumes of previous quarters to abate in 4Q FY 23 and begin the new financial year with the same momentum.

Our Specialty care products are largely driven by the export market (Europe, USA, and China). The Russia - Ukraine war and the resulting energy crisis had resulted in an overall slowdown in the European market. In China, the COVID induced lockdowns had an adverse impact on demand while the USA market was still sitting on higher priced inventories. All these factors impacted Specialty care volumes this year. Looking ahead, while we expect inventory corrections in the USA market to be complete by 4Q FY 23, the recovery of Europe and China will lead the way for volume growth of Specialty care products in FY 24.

Capex investment in FY 2022-23 and projects/facilities where the company invested? Capex plans for FY 2023-24 and how will it help the company in the long term?

Our annual Capex is around Rs. 150-200 crores and we have spent close to Rs. 120 crores in the first 9 months of this year. We do see a growth Capex of Rs. 150-200 crores per year continuing for the next 2-3 years. Typically, Capex is a combination of capacity enhancement as well as maintenance. During the year, we completed our additional capacity enhancement at Jhagadia.

Environmental clearances for expansion and additional land available at Jhagadia and Suez plants. What’s your expansion plan?

We have the necessary statutory permissions for capacity enhancement at our Jhagadia and Suez plants. Our capacity expansion plans are always ahead of demand growth.

Update on expansion projects for Specialty care products at Jhagadia and Tarapur plants? What is the total installed capacity across and how much additional capacity was added during FY 2022-23?

Our pilot plant at Tarapur for new molecules commenced operations in FY 2022-23. This will help us in seeding the market for new applications in Personal care and Home care. At Jhagadia, we have completed our expansion project for various Specialty care ingredients in FY 2022-23.

Major product launches in Performance Surfactants & Specialty care products categories during FY 2022-23? Expected value addition and impact on overall revenue? Any major additions into your portfolio on cards?

In FY 2022-23, we marketed Taurates & Sarcosinates along with new grades of Isethionates. Our application team works very closely on joint development projects with our customers which allows them to offer products with unique benefits to the consumers. Galaxy also helps in customization of these compositions to give them exclusivity and help them maintain confidentiality of their products.

The constant endeavor of Galaxy has been to offer safer products to consumers. Accordingly, last year our team successfully improved the existing SLES process to consistently obtain the product with less than 5 ppm dioxane with our GalEcoSafe range.

Sustainability is a key focus and acceptance of sustainable formats in Personal care is rising among consumers. Shampoo Bar is gaining good traction. Combining our capabilities and competencies in Syndet & Hair care science, and with our comprehensive range of Mild Surfactants we have launched a Conditioning Shampoo Bar Syndet base for ready preparation of high conditioning shampoo bar.

Driving sustainability and convenience, we extended the range of Liquid Capsules/pods concentrate for floor cleaner. This ready mix allows customers to make concentrated liquid floor cleaner capsules for DIY or Unit Dose use and save on utilities, fuel, water, and plastic.

Company's performance in global markets, especially Europe and China in FY 2022-23? How do you look at the future market potential in the emerging and mature markets?

Europe, one of the key mature markets for us, was reeling under the impact of the Russia - Ukraine war and the resultant energy crisis throughout 2022. As a result, there was an overall slowdown in Europe. While the global markets steadily recovered from the pandemic, China was still reeling under the impact of COVID-19. Recovery was much slower than expected as many cities continued to be under strict lockdown for long intervals thereby impacting business negatively. Several emerging market countries were under financial stress in 2022. This was primarily on account of surging energy prices as well as high food inflation.

For 2023, progress on climate policies, financial policies and multilateral issues will be critical to ensure we overcome the geo-economic pressures. In the long term, we do see a growing demand for Personal care and Home care products.

In recent times, the company has won the Best ESG Initiative to Improve Access to Clean Water Award and Golden Peacock Eco-Innovation Award 2021. How these achievements strengthen the company's commitment towards future ESG goals?

The Best ESG Initiative award encourages us to scale greater heights in corporate responsibility. The Golden Peacock Eco-Innovation award gives an impetus towards our Mission 2030; to serve customers with value added products, manufactured responsibly.

In 2022, the company has achieved water positive certification and become 1.4X water positive. How did it become possible and what does it mean to you and your customers?

More than a billion people across the globe lack access to water and nearly 2.7 billion face water scarcity at least one month in a year. At Galaxy, we are cognizant of our water footprint. Reducing water consumption in operations and improving water quality have therefore been important business objectives for us. Guided by our Sustainability cell, the working committees across locations measure, monitor & review water related topics, both within the company and community areas. We define water stewardship as the usage of water that is socially equitable, environmentally sustainable, and economically beneficial, achieved through a stakeholder inclusive process.

All our sites in India are zero liquid discharge facilities. We are carrying out a substantial number of activities through CSR projects to conserve water. Rainwater harvesting within the company boundary and in community areas, check dam creation and desilting of water bodies are undertaken to improve water availability. These conscious and consistent efforts have helped us in achieving water positivity of 1.4X. As customers are also enforcing ESG measures, they need a mind partner to provide less water intensive solutions.

How is the company strengthening its in-house R&D capabilities to expand customized solutions to its customers? How many new products are expected from the innovation funnel in FY 2023-24?

The company aims to grow faster than the market by retaining existing accounts and by introducing new and differentiated products to capture new opportunities and newer areas of applications. The speed of launch of new products is critical for the growth in market share. Keeping that in mind, the company has invested in expansion of R&D capacity and building a dedicated plant for R&D product incubation to accelerate commercialization. These expansions are already bearing fruit. The expanded capacity will also support ramping up the strength of scientists to increase the rate of product introductions. We have also started providing unique customized offerings to our customers in the form of product/concept/formulation so that we are able to grow and be a part of their growth journey. In

FY 2023-24, we will continue to introduce products in the Personal care and Home care segments in line with customer trends.

Automation and digitalization projects carried out in FY 2022-23? What's the plan for brownfield and greenfield projects?

Our company has always worked to be contemporary in the application of technology for its business processes and its interface inter and intra organization. Towards this end, review of business processes, applications available, and digitization of processes with adequate controls is an ongoing work in progress. We have been working on the best known SAP ERP for over a decade, with substantive utilization of its features and are striving to move subsidiaries on the same to enable seamless availability of real time data on consolidated operations. Cyber security is at the heart of effort with a 24x7 surveillance mechanism in place to thwart any infringements in collaboration with renowned professional names in the domain to remain abreast with the technological advancements accessible.

When is Galaxy Surfactants planning to achieve Net Carbon Zero and milestones set up by the company to achieve it?

At Galaxy, we have integrated sustainability into our day to day working. We have adopted Science Based Target Initiatives (SBTi). Science based targets provide a clearly defined pathway to future proof growth by specifying how much and how quickly companies need to reduce their greenhouse gas emissions. Currently, we are in the process of target validation. We are sourcing renewable sources of energy – Almost 18% of power sources are renewable in FY 22-23; We are committed to using RSPO certified material; and number of energy efficiency projects are driven to ensure we are using resources effectively and efficiently. There is a long way to go in terms of creating an opportunity to make carbon capture and use feasible technologies. Removal of hurdles for shifting to a 100% renewable source of power will be key to achieving Net Carbon Zero.

CSR projects executed in FY 2022-23 and plans with respect to FY 2023-24?

At Galaxy, we believe that it is the society that makes us and therefore it becomes our responsibility to give back to the society. Our CSR activities focus on five critical areas that shape the society we live in today: Health & Hygiene (Aarogya Vardheeni); Education (Gyaan Sanjeevani); Community Development (Samajeek Utthan); Environment Protection (Vatavaran Suraksha); and Women Empowerment (Stree Unnati). Primary health center, building toilets, vocational skill development, watershed developments, tree plantation and community hall for women self- help groups were some of the key projects undertaken this year. Cumulatively, we have reached around 150,000 beneficiaries through our initiatives this year. For the coming year, we will continue to focus on these critical areas and reach out to a larger number of beneficiaries.

June 14, 2023

Gujarat Fluorochemicals Limited financial performance in FY 2022-23 and plans for FY 2023-24? Key achievements in FY 2022-23?

In the 9 months ended Dec 2022, we have reported a revenue of Rs. 4,213 crore as against Rs. 3,954 crore for the full year FY 2022, while our EBITDA and PAT for the 9 months ended Dec 2022 stood at Rs. 1,518 crore and Rs. 991 crore respectively as against Rs. 1,198 crore and Rs. 775 crore for the full year FY 2022. We are incurring a Capex of Rs. 1,250 crore for FY23 and FY24 each. Most of the Capex this year is towards expanding our new fluoropolymers portfolio and for the next year it will be more towards the EV segment, both battery chemicals, and fluoropolymers used in the EV space.

GFL is the only manufacturer of PTFE/Flouropolymer in India. Are you planning to set up more such exclusive manufacturing facilities in India for other products?

Yes, we have plans of rapid expansion in terms of adding capacities to our existing Fluoropolymer portfolio for applications in electric vehicle batteries, solar films, and hydrogen fuel cells. Our vertically integrated operations help us to maximize value addition.

GFL's Jolva facility is focusing on Fluoropolymers, Specialty, and New Age Chemicals and presently is under phased commissioning. Please elaborate? 

Our Jolva facility is a part of continuous expansion of the existing products and new age chemicals. Customers understand and appreciate our customized products, local presence, just-in-time deliveries, and continuous engagement with customers, which is reflected in the increase in demand for our products. We plan to start commercial operations of our New Age Chemicals by the end of 2023.

GFL is in the process of setting up an integrated battery chemicals complex. What's the update in terms of Capex, timeline, and battery chemicals products to be manufactured in the complex?

At GFL, we give utmost importance to sustainability and the environment. In an effort to contribute to global carbon neutrality goals, we have invested in the integrated battery chemicals complex. With our own fluorspar mines and electronic grade AHF manufacturing facility, we plan to manufacture electrolyte salts such as LiPF6 and other value-added products.

The company is setting up India’s first PVDF solar film project which will be commissioned in the next financial year. What's the update in terms of Capex and timeline?

We leveraged our vertically integrated facility to enter the segment of PVDF films. At a time when India and the world have set aggressive solar energy targets, it is highly important to scale local production of relevant raw materials such as PVDF films. This plant is planned to be commissioned by the second quarter of the current financial year.

On the export front, the company is a major supplier of Fluoropolymers to Europe and USA. How are you planning to increase your export market share?

We will continue to work closely with our customers on upcoming projects and develop greener products to provide value addition. We will play our role as a preferred supplier of fluoropolymers that are of utmost importance for major applications in Europe and USA. We will also continue to take all necessary steps to make sure products are consistently supplied to customers at the right time.

Global trends in Bulk Chemicals and Fluorochemicals in 2023?

Due to Montreal protocol regulations the uses of HCFC have been restricted and are being phased out gradually. The demand for HCFC thus is shrinking globally. HCFCs are being replaced by HFCs. The markets for HFCs are growing globally at about 7-8%. However, GFL is targeting 20% annual growth for HFC. 

Key sustainability and CSR initiatives planned for FY 2023-24?

As far as sustainability is concerned, the biggest challenge today in our industry to build a strong product life cycle is to balance economic and environmental sustainability.

This includes adherence to strict global regulatory compliance and meeting the challenging demands of customers for environment-friendly products. In addition, we also seek efficient and cost-effective methods of producing our products, reducing waste and emissions and ensuring safe handling/disposal of chemicals throughout the product life cycle.

We consistently monitor dynamic regulatory changes and have consequently moved away from chemicals of concern in our fluoropolymer product line.

At GFL, giving back to the community is part of our corporate philosophy. As corporate citizens, we are committed to acting in an economically, socially and ecologically responsible manner and coordinating the interests of various stakeholder groups. We strive to create a more sustainable company and have a positive impact on our communities, society and the planet.

Are you planning to completely switch to green/renewable power? If yes, by what time frame?

We at GFL have already invested a substantial part in renewable power. For full switchover we shall abide by India’s time frame.

The company has invested a Capex of Rs. 1,250 crores in FY 2022-23 and facilities where it has invested? Facilities where it is planning to invest Rs. 1,250 crores in FY 2023-24?

At this moment, we will mainly be investing in fluoropolymers, battery chemicals and intermediates. Going forward we shall be looking towards newer segments as and when we see a demand and opportunity arising at a domestic and international level.

DST approved Research and Application development centers are focusing both on new businesses as well as existing businesses. How are you planning to leverage your innovation centers?

If you look at the current investments that we are doing, it is basically by developing new grades of our products for new age sectors such as uses and applications in 5G, EVs, semiconductor, Green hydrogen, etc.

GFL has also taken up projects to indigenously develop and produce PEM membranes. Any update on this front?

Yes, as already discussed previously, lab products have been developed, a prototype plant is under construction. We shall soon be ready for commercially viable grades.

GFL is well equipped to cater to the fluoropolymers required for the hydrogen electrolysers, fuel cells, and charging stations. What kind of fluoropolymers are you planning to manufacture to cater to these segments and by when?

A variety of Fluoropolymers, like PFA, PVDF, and PTFE are already being used in such areas for the hydrogen electrolysers, fuel cells, and EV charging stations. We have several products for these segments and shall complete the remaining ones also in the next couple of years.

June 12, 2023

Huntsman introduced a new range of materials that offer exceptional strength, durability, flexibility and are designed to meet the growing demand for lightweight, high-performance materials in various industries. The company also launched new formulations of epoxy resins and curing agents that provide superior adhesion, corrosion protection, and mechanical strength 

2023 trends in Polyurethanes, Advanced Materials, and Performance Products? 

We are very optimistic about the future of Polyurethanes in India, given the country's position as one of the fastest-growing markets. Over the past decade, we have seen exponential growth in the Polyurethane industry, driven by diverse opportunities in consumer sectors such as footwear, automobiles, appliances, and construction. This growth has been further supported by a sizable middle-class and affluent youth population. 

We believe that sustainability will be a key focus for the industry going forward, and we are committed to developing new materials that are both high-performing and environmentally responsible. In addition, we see a growing demand for advanced materials that offer unique properties and characteristics, such as improved durability and enhanced comfort. At Huntsman, we are investing in research and development and collaborating with our partners to develop solutions that meet the evolving needs of our customers and the world around us. 

The composites industry has also received a huge boost with the transition from conventional rebar to composite options. This shift represents a significant step towards a future where more substantial structures can be built using reinforced materials. If the construction market can rely on composite materials, it will be a major achievement for the industry. Overall, we are excited about the possibilities for Polyurethanes and advanced materials in India and around the world, and we are committed to leading the way in innovation and sustainability. 

Key milestones achieved by Huntsman India in FY 2022-23 with respect to Polyurethanes, Advanced Materials, and Performance Products?

We have reached several significant milestones that reflect our unwavering commitment to excellence. We were honoured to be recognized by the industry for our outstanding performance in safety. Our retention of ICC approval to use Responsible Care underlines our commitment to sustainability and environmental stewardship. We also introduced a new range of materials that offer exceptional strength, durability, and flexibility. These materials are designed to meet the growing demand for lightweight, high-performance materials in various industries. Additionally, we launched new formulations of epoxy resins and curing agents that provide superior adhesion, corrosion protection, and mechanical strength. 

Our commitment to sustainable innovation in the chemical industry is evident in our development of TEROL. This bio-based alternative to traditional materials is derived from recycled PET bottles and has been advanced for use in footwear and insulation applications. Incorporating TEROL into our products not only makes a statement on sustainability but also provides customers with high-performing, eco-friendly solutions that meet their needs while reducing waste and environmental impact. 

Furthermore, we're proud to have made significant strides in addressing the changing needs of the automotive industry, particularly with the rapid growth of Electric Vehicles (EVs) in India. Our Polyurethanes business has developed a renewed portfolio of Polyurethane solutions to meet the demands of the evolving automotive market, including materials for thermal management, lightweighting, and noise reduction in EV battery systems. At Huntsman, we're committed to creating a better future through our sustainable products and practices.  

Are you planning to manufacture battery materials in India? If yes, battery material products that Huntsman India is planning to manufacture and market? 

We are committed to contributing to the growth of the Indian Electric Vehicle (EV) market and the country's transition to a cleaner and greener future. As a leading Specialty Chemicals manufacturer, we provide comprehensive casting and impregnating resin systems for various EV components, including batteries. We are currently exploring various opportunities, which would further support the government's vision of developing a robust domestic EV ecosystem. 

Our battery material products are specifically designed to meet the unique requirements of the Indian market, including increased safety, lightweighting, and improved performance features. We offer technical support and expertise to assist EV manufacturers in selecting the right materials for their specific applications, ensuring that they meet the highest standards of quality and reliability. Through our innovative products and services, we are committed to accelerating the transition towards a more sustainable transportation system. Our goal is to provide cutting-edge solutions that support the growth of the Indian EV industry and contribute to a cleaner, greener future for all.  

How is Huntsman India striking a balance between environment friendly policies and sustainable growth? 

Huntsman India is committed to promoting sustainable growth while minimizing our environmental footprint. We strive to balance our growth objectives with environmental responsibility by implementing policies and practices that reduce waste, conserve resources, and promote sustainable development. Our Responsible Care commitment is the cornerstone of our approach, and we have established several initiatives to support this effort, such as improving our energy efficiency, reducing our greenhouse gas emissions, and launching a water conservation project aimed at improving water efficiency and reducing net water usage. We also leverage our expertise in chemistry to develop innovative products and processes that promote sustainability. For example, our TEROL product line offers a credible recycled alternative to traditional materials that reduce waste. We are constantly exploring new ways to innovate and provide sustainable solutions that meet the needs of our customers. 

In summary, Huntsman India is committed to promoting sustainable growth by implementing environmental policies and practices, leveraging chemistry expertise to develop sustainable products and processes, and engaging with all stakeholders to foster collaboration and promote responsible practices. Our goal is to contribute to a cleaner and greener future for all. 

Sustainability plans for Huntsman India keeping in view carbon neutrality, full circularity, and sustainable chemistry with respect to Horizon 2025 targets? 

Huntsman India is committed to achieving the ambitious goals outlined in Huntsman Corporation's Horizon 2025 sustainability strategy. This strategy sets targets for reducing the company's environmental footprint, promoting sustainable chemistry, and advancing the circular economy. 

With respect to carbon neutrality, Huntsman India has already made progress towards reducing greenhouse gas emissions and improving energy efficiency through initiatives such as the installation of a solar facility at our manufacturing plant in Chakan, Pune. We will continue to pursue a variety of measures to reduce our carbon footprint, including the use of renewable energy sources, energy-efficient technologies, and process improvements. 

Huntsman India is also committed to advancing the circular economy by developing innovative products and processes that promote the use of recycled materials and reduce waste. We are actively exploring ways to incorporate circularity principles into our manufacturing processes and supply chain management practices, with a goal of achieving full circularity. 

Finally, we are committed to promoting sustainable chemistry by developing products that meet the highest standards of safety, performance, and environmental responsibility. Our Bio-based product line is just one example of our efforts to develop sustainable alternatives to traditional materials, and we will continue to invest in research and development to identify new opportunities for sustainable chemistry. 

CSR initiatives completed by Huntsman in FY 2022-23 and plans for FY 2023-24?

At Huntsman, we place equal importance on the safety of our employees and the health and wellbeing of the communities in which we work. Several initiatives have been carried out by our dedicated corporate social responsibility team across our locations which enables us to access the ultimate key: the licence to operate. These include a setting up of a high school near our plant in Chakan Pune, our primary health care facility supported the administration of over one lakh COVID-19 vaccines in and around Chakan, setting up a drinking water supply unit benefitting 5,000 villagers around Padra and also offering scholarships worth Rs. one lakh to deserving students in the Padra region of Gujarat.  

We are running medical mobile clinics which have covered 55,000 people from 18 villages in Chakan and over 25,000 people in Navi Mumbai. Our integrated rural development project Badlav has benefitted around 30,000 villagers across 10 villages both in Maharashtra and Gujarat. Under Anandi, our holistic education development programme, we have covered over 7,000 students. Lastly, our initiative to make rural Chakan an open defecation free region is going well. We have already covered two villages by building sanitation facilities in each house of the village thus benefiting over 300 people in the region.  

Huntsman India plans for FY 2023-24 with respect to Polyurethanes, Advanced Materials, and Performance Products?

We have an ambitious plan for 2023 that focuses on innovation and growth across all business segments, including Polyurethanes, Advanced Materials, and Performance Products. 

Polyurethanes: We have amended our manufacturing capability to produce a broader range of Polyurethane materials such as Footwear Polyester systems. We have invested in Chakan to locally manufacture PU and Polyurea Coatings. We are on the verge of commissioning a renewed Technology Development and Customer Experience Center in Pune. 

Advanced Materials: We continue to develop innovative products that meet the needs of its customers across a wide range of industries, including aerospace, electronics, and automotive. The company is exploring new applications for its cutting-edge Araldite adhesives and composites, which are known for their strength, durability, and reliability. 

Performance Products: We are expanding our portfolio of performance products focusing on sustainability, developing new products and processes that reduce waste, conserve resources, and promote circularity. 

Overall, Huntsman India's plan for 2023 reflects its commitment to innovation, growth, and sustainability across all business segments. The company is poised to build on its successes and continue to drive progress in the Indian market and beyond.

June 09, 2023

hubergroup is investing in research and development to develop new products and technologies that are more energy-efficient and sustainable. The company is also reducing energy consumption through energy-efficient technologies and process at our sites in India.  

Key achievements in FY 2022-23 by hubergroup Asia/India? 

FY2022-23 was a challenging year. It started with challenges of higher demand, supply chain disruptions, raw material cost upsurge while it ended with a sluggish demand, pipeline correction, management of operational and business cost. Nevertheless, hubergroup developed innovative products with unique properties with efficient and environmentally friendly manufacturing processes to meet customer needs. We met sustainability goals by reducing environmental impact, improved safety, expanded into new markets, and collaborated with many new business partners. 

We started our Global IT Centre of Excellence in India where services like network, security, data centre of hubergroup worldwide are now delivered from one single location. Our innovative products MGA CONTACT and Oxygen Barrier Coating won awards for sustainability. The launch of our eco-friendly new water-based ink portfolio HYDRO-i, developed jointly by the R&D teams of India and Germany, has been accepted and appreciated by the packaging industry.   

hubergroup is one of the leading international specialists for solutions and technologies relating to printing inks, printing aid, and raw materials. What's your Asia/India strategy for FY 2023-24?  

hubergroup is a German-based company with a strong presence in India serving as a manufacturing hub for our global operations. We follow some of the best European business practices and yet produce products in cost-effective ways by leveraging our manufacturing footprints in India. Our Asia/India strategy in the current scenario is to focus on sustainability, energy efficiency, and collaboration with stakeholders to drive innovation and growth in a rapidly changing market. We are investing in research and development to develop new products and technologies that are more energy-efficient and sustainable.  

We are also expanding into new markets to explore with a broader focus. We have separated our Chemicals business from our Print Solutions business in 2020 to be more focused and provide solutions tailored to our customers. We also continue to remain focused on our employees’ well being and bringing in more diversity to the existing workforce. 

How has the chemicals division performed in Asia/India in FY 2022-23? Bouquet of products planned to be launched in this fiscal?  

Our global Chemicals Division performed well in FY 2022-23. However, we have higher expectations from Asia/India due to the region's economic growth, and rapid industrialization, and urbanization. The industry also faces challenges such as rising raw material costs, environmental regulations, and increasing competition from other regions. The COVID-19 pandemic has also impacted the industry, causing disruptions in the supply chain, and reducing demand from certain sectors. Overall, the chemicals business in Asia/India is expected to grow significantly higher than GDP growth. Going forward our focus is to enhance business for radiation curing systems which includes UV oligomers (polyester acrylate, poly urethane acrylates, and epoxy acrylates) and monomers. 

Recently, we participated in the European Coating Show (ECS 2023) to showcase our product portfolio in the Chemicals Division and received overwhelming responses. 

hubergroup develops innovative solutions and technologies for the printing and packaging, the paint and coating, and chemical industries. New technologies/products that you are developing in R&D labs and its implication for the hubergroup?  

We are working on developing new products with an increased use of bio-based raw materials to fulfill our commitment towards sustainability and offer eco-friendly products to our customers while ensuring compliance in changing regulatory requirements. Drawing on our knowledge of resin design, our focus is to provide resin products like UV oligomers, modified Rosin resin, polyurethane resin or polyester resin that meet various requirements of the printing, packaging, and coating industries. These efforts will enable us to expand our chemical business portfolio and cater to a larger market size. 

New projects implemented in FY 2022-23? Expansion plans for FY 2023-24? 

We are excited to expand our UV oligomer, monomer, and ketonic resin product range. At the same time, we are also exploring the possibility of collaborating with some of the leading companies for custom manufacturing. We are seeking synergies that can complement our assets and strong operational know-how to achieve greater business efficiencies and customer satisfaction. We will continue to provide updates on this through our official communication channels. 

The company is offering a wide range of products for use in radiation-curing systems. Potential use cases and key customers for products for use in radio-curing systems? 

Radiation-curing systems have a wide range of potential uses and customers in various industries. The printing industry is the biggest: Radiation-curing systems are used in the printing industry to cure inks and coatings on various substrates such as paper, plastic or metal. Additionally, they are often used in the coatings industry for automobiles.  

hubergroup is also currently placing a special focus on wood coatings. What's your overview of the Indian market and when are you planning to launch this product in India?  

The wood coating market in India has been growing steadily over the years, driven by increasing demand from various end-use industries such as furniture, construction, and automotive. The market is expected to continue its growth trajectory in the coming years, thanks to rising disposable incomes, urbanization, and increasing construction activities in the country. 

At hubergroup, we have some unique solutions like UV oligomers (polyester acrylate, urethane acrylate, and epoxy acrylate), functional resins, monomers (TPGDA, DPGDA, PETIA, GPTA, EOTMPTA, PPTTA, and DPHA), conventional resins (modified Rosin and polyurethane) specially designed for the wood industry to enhance coating performance.  

hubergroup is also focusing on providing chemical substances such as PU resins and UV oligomers in their purest form and driving forward product innovations. How are you moving in this direction? 

The progress for PU resins and UV oligomers is good with several products launched in 2022-23 that are technologically well accepted. We are now adding capacities to scale-up our production and optimize cost. We also have products for the wood coating segment now. 

The company is taking a holistic view of sustainability and is also driving a circular economy. Steps taken by hubergroup India on sustainability and circular economy front? 

At hubergroup, we have placed a great emphasis on sustainability for many years. We have been a pioneer for eco-friendly printing solutions such as cobalt-free inks and we will continue this approach for our Chemicals Division as well. We have taken several key steps to improve sustainability and adopt circular economy principles like measure and track environmental impact, adopt circular economy principles to design products for longevity, set sustainability targets, engage with suppliers, invest in renewable energy, promote sustainable products, and partnerships with stakeholders.

At our largest production site in Vapi, India, we have, for example, implemented photovoltaic systems and a?Multi Effect Evaporator (MEE)?into operation, a state-of-the-art technology which ensures efficient processing of the site’s effluents.  

What are the steps you are undertaking to achieve Net Carbon Zero? 

We continue to build strategies and find innovative ways to minimize our carbon footprints. At our sites in India, we are reducing energy consumption through energy-efficient technologies and process improvements. We have also implemented photovoltaic systems in our plants. We are also fostering use of renewable energy sources like wind and solar. 

In FY 2022-23, hubergroup India launched a healthcare initiative for rural areas in the Indian state of Gujarat, collaborating with Rotary Vapi Riverside. CSR activities undertaken by the company in FY 2022-23 and plans for FY 2023-24? 

hubergroup has production sites in Daman, Vapi, and Silvassa – So many of our employees live in these regions. We believe in contributing and giving back to the people in our neighbourhood. Our endeavour is to provide quality healthcare services at the doorsteps of rural residents complementing the government promoted health programmes. Our services through two mobile medical vans were well accepted by villagers. This prompted us to add two more vans, one for dental and one for eye care in March 2023. Moreover, we donated a high-end digital mammography system to the newly inaugurated Mammography Department at Shreyas Medicare Janseva Hospital Vapi, India. Going forward, this year our CSR activities will once again be committed to service in the health and education sector.

June 08, 2023

Evonik is exploring the sourcing of renewable energy for its production assets in India. The company is also evaluating the utilization of biomass as an energy source to further reduce scope 1 and 2 emissions. 

What are the global trends in specialty chemicals in 2023? 

Last year, the effects of the Ukraine war, high inflation, and fluctuating energy prices brought significant challenges to our operations and also the chemical industry, and they still do. At Evonik, we are cautiously optimistic for 2023. Much will depend on how sustainably energy prices and inflation will soften and how strong the recovery of the global economy is going to be, especially with respect to China. In the first quarter of 2023, in particular, the negative trend of the second half of 2022 continued. From the second quarter onwards, the situation is likely to gradually improve.

Amid the headwinds, the industry is pressing on with its transformation towards sustainability. So is Evonik. With our next phase of strategic transformation, we have fully and systematically integrated sustainability into all elements of our strategy. We are executing targeted and massive investments in green growth and making sustainability our central innovation driver. In this context, we are strengthening our sustainability portfolio and reducing our footprint by cutting emissions from production and processing.

Evonik India's performance in FY 2022-23? List the key achievements for Specialty Additives, Nutrition & Care, Smart Materials, and Performance Materials division in FY 2022-23? 
Evonik's India cluster had a strong growth in FY 2022–23 compared to FY 2012–13, with robust performance across the Specialty Additives, Nutrition & Care, and Smart Materials divisions, and steady performance in the Performance Materials division.

Globally, Evonik is focusing on transformation through sustainability and profitability. What's your strategy for India and how are you making it a reality? Sustainability is a central element in Evonik's purpose ‘Leading Beyond Chemistry’. Evonik India sustainability plans for FY 2023-24? 
Evonik goes far beyond chemistry to create innovative, profitable, and sustainable solutions for customers. As a specialty chemicals company with presence throughout the world, Evonik sees sustainability and long-term business success as two sides of the same coin.

In line with Evonik’s sustainability approach, our endeavour for India assets is to reduce carbon footprint by significantly cutting greenhouse gas emissions from production and processing. Also, in India, we are exploring ways to utilise available bioresources to improve the sustainability of our products. The inauguration of the Zero Liquid Discharge Plant at our Dombivli (Maharashtra, India) site last year is evident of how we accept responsibility for our businesses, our employees, the environment, and society.

Further, in India, we can also play an enabling role in the country’s sustainable journey by providing solutions to our customers and industry. The so-called Next Generation Solutions from Evonik not only make our customers' products more sustainable but also help them improve their climate footprint.

For example, in line with India’s net zero target by 2070 and 500 GW renewable energy target by 2030, the Sustainable Alternative Towards Affordable Transportation initiative, Evonik is supporting our customers by providing sustainable products and solutions like Sepuran Green membranes for Bio-CNG applications, CAPLUS for CO2 removal, Vestamin IPD for wind turbine applications, etc.

Evonik is making targeted investments in six defined innovation growth fields that promise high returns. Please explain? 
Our innovation portfolio focuses on six growth fields, which are assigned to our growth engines in highly attractive markets with above-average growth rates. The six growth fields are: Sustainable nutrition for livestock and people; Healthcare solutions; Health-enhancing substances and nutritional supplements; Gas separation membranes; Cosmetics solutions; and products for additive manufacturing. 

We are right on track to generate additional sales of more than €1 billion with our innovation growth fields by 2025. Sales from these innovation growth fields rose more than 20 percent last year to €600 million.

The company has set a goal of investing more than €3 billion in the growth of Next Generation Solutions by 2030 in order to increase their share to more than 50 percent. Areas where you are investing? 

Next-Generation solutions are products with superior sustainability benefits. That includes, for example, drug delivery technologies for controlled release of pharmaceutical active ingredients, gas separation membranes for biogas and hydrogen, as well as natural-based active ingredients for cosmetics. Examples of investments include: Battery materials: We have opened a new research centre for lithium-ion batteries in China. In Japan, we are expanding production capacity for alumina for the battery market; Biodegradable surfactants: Production plant for biodegradable surfactants is being built in Slovakia; and Pharmaceutical lipids: In the USA, we have just begun construction of a plant for pharmaceutical lipids required for mRNA-based medicines.

Do you see an increased role of Evonik India's R&D centres in the global scheme of things? New areas where you would be focusing? 

India is the 5th largest economy in the world. With the pace at which the economy is growing and also with the impact of the budget for 2022–2023, domestic demand is also expected to increase. Under these circumstances, Evonik’s business is expected to grow at a good rate. With most of our products being technology-driven, I would definitely expect Evonik’s R&D centre to play a very important role in areas of new product and technology development. Evonik’s R&D centre would also play a role in tapping the needs of the Indian market and developing products to suit the specific requirements of Indian customers.

The Research Centre India (RCI) was established in 2002. RCI is Evonik’s Oral Competence Centre, providing global support in formulation development for the pharmaceutical, nutraceutical, and food industries. RCI has been identified as a differentiator by continuously enhancing its competencies and footprint to support the global health care business. 

Aligning with this centre is the Catalyst R&D facility at Dombivli, located in the industrial corridor on the outskirts of Mumbai. Catering to regional and global customers across varied industries such as pharmaceuticals, agro, fine chemicals, food, and edible oil, this site supports the product line Life Sciences and Performance Catalysts, which comprises oil and fat hydrogenation catalysts, precious metal catalysts, and activated metal catalysts.

Over the last two decades, the R&D centres in India have played an important role at a global level in delivering new products and technologies. The potential of the Indian technical talent pool has been acknowledged over the years. I feel confident that the role of Evonik’s R&D centres will become even larger over the coming years, and organic synthesis will also be a focus in India, along with Oral and Catalyst. The focus will be on next-generation solutions with clearly positive sustainability benefits that are above the market reference.

Important step in the sustainable transformation is the rapid overhaul of energy supply. What's your India strategy with respect to purchasing green/renewable electricity and how are you making it a reality? 

We are exploring the sourcing of renewable energy for our production assets in India. We are also evaluating the utilization of biomass as an energy source to further reduce scope 1 and 2 emissions.

CSR initiatives planned for FY 2023-24? 

We are deeply committed to improving the social environment in any way possible and consciously reach out to support causes across the board, primarily in the realms of children’s education, women's empowerment, and healthcare. In 2023, we are entering into a partnership with CARE India to support the STEM education of girls from underprivileged areas. Evonik will support the setup of seven vibrant STEM learning spaces called the "innovator’s laboratory". These are community-level tinkering spaces for children to build STEM thinking skills using digital and non-digital tools. Also, onsite mentoring, community events, and student-driven projects will be organised to improve the science, mathematics, and digital literacy skills of girls.

June 07, 2023

In an exclusive interview with Pravin Prashant, Editor, Indian Chemical News, Dr. Vikas Dhole, General Manager, Sustainability Industry Business Unit, Aspen Technology (AspenTech) and Manish Chawla, SVP, Chief Customer Officer, AspenTech share insights on current challenges faced by chemical industry, sustainability investments, co-innovations, role of DeepTech, and balancing sustainability and innovations to be profitable.  

What are the current challenges faced by the chemical industry globally? 

Dr. Vikas Dhole: First, there is a growing demand for chemicals while the chemical industry goes through ups and downs. In general, the trend is up most of the time whilst now it is facing challenges globally. Second, sustainability is a big challenge and opportunity for the chemical industry because of aggressive targets that companies have set in terms of decarbonisation. Majority of large chemical players have pledged to go net zero by 2050, maybe 50% by 2030 but again the question is how to be profitable and achieve the net zero goals simultaneously. Again, there is an additional challenge in the form of circularity.  

You mentioned energy and chemical companies are investing US $876 billion on sustainability projects from 2020 which is inclusive of carbon capture, green hydrogen and bio-feedstocks? Of this, what percentage is from the chemical vertical?

Manish Chawla: We roughly estimate that about a quarter of the sustainability investments are headed for chemicals, which includes both bulk and speciality chemicals. The remaining amount breaks down to about 70% for the oil and gas-related sector. The balance 5% comes from metals and mining industries.  

Dr. Vikas Dhole: The sustainability investment is divided into two parts. One is operational investment which is not captured here as this is mainly Capex investment which is strategic initiatives like carbon capture, green hydrogen, and bio-feedstocks. There is a significant investment happening from an operational point of view for improving energy efficiency, monitoring emissions, reducing emissions, and reducing plastic waste. From a Capex point of view, 25% makes sense for the chemical industry, whereas oil and gas hold a major share. In oil & gas investment, there is a split between major players. Not just companies but clusters, as there are groups of companies which in a collaborative way are bringing the investments in these Capex areas.  

The chemical industry is playing a collaborative role in carbon capture. They may not be a key player in clusters but they play an important part in carbon capture and green hydrogen. The chemical industry has a role to play in carbon capture, utilisation of CO2 towards newer chemicals such as methanol.

Bio-feedstocks, in terms of what you can do from a green point of view, starting from green feedstocks into chemicals but operationally long-term investments in the chemical industry, are resulting in energy efficiency and emission reduction. 

What is your estimate for the operational investment compared to Capex? 

Dr. Vikas Dhole: While Capex investments happen over a long period, the operational investments are done annually. Out of the annual operational budget, investment in sustainability would be 30-40% of the budget for improving efficiency and it varies from country to country and nature of chemical business but it is definitely increasing.  

How has AspenTech India performed? How do we look at Capex numbers from India perspective? 

Dr. Vikas Dhole: In terms of country Capex in India, about 5% of the USD 43.8B in the overall investment is focused on this country and it is projected to be rising sharply for both private and public sector companies. A lot of strategic private investment is going into green energy. If you add up the private investments made by companies, such as Reliance and Adani, it is tens of billions in USD, in addition to the government investments. This number will further increase in future as it is just the beginning.

There is investment happening in the Middle East, North America, Southeast Asia, and Australia. There is a law passed called IRS (Inflation Reduction Act) in the USA that encourages companies to invest and all that is driving a lot of Capex in overall spend.

What will be AspenTech's market share? 

Dr. Vikas Dhole: Let me clarify that these numbers are based on the announcements and not actually spent. It is a long-term commitment. Majority of these projects on carbon capture are in an early feasibility design stage. I would say that we have a substantial market share in carbon capture globally. Large multinationals, technology companies, engineering and procurement companies are using our software due to modelling of these systems, doing techno analysis, and early designs.  

Our unique strength is our ability to help clients quickly with accurate modelling of these systems, carbon capture, helping them in balancing of Opex and Capex.

Also, accelerating designs as there are so many proposals coming through in various parts of the world. The engineering companies are finding it difficult to cope up with the workload. We are helping these companies to become more efficient while executing these projects.

Manish Chawla: In terms of quantification, a large number of these projects are in the designing stage by engineering players. Our engineering or simulation software is a marketing software. 99% of the time we wouldn’t even know how our software is being used but we were one of the first to launch what we call the sustainability models that made it easier for these engineering companies to use our software with starting models and later they can adopt them.  

Secondly, engineering companies are seeing a lift due to use of these Capex projects. They are coming back to us to say that they want a broader partnership, end to end solutions for green hydrogen or carbon capture etc. This gives us confidence. Moreover, the feedback from users and customers shows that our brand is getting strongly associated with sustainability. If I intersect all of them together, our goal of being a leading player in this space is surely going to be fulfilled. Now as we are moving towards that, we are also looking at operation solutions because these facilities will also go towards the operations. They will become a core part of operating system architecture.

Dr. Vikas Dhole: It is the entire life cycle of these assets. You design first, prepare for operations, and then you go into operations. We have solutions, from design to operations and maintenance. The ability to reuse models and information across the life cycle is a critical factor. We are winning in the majority of cases. Undoubtedly, we are a market leader in engineering solutions, four times bigger than the next player. Hence, the probability of clients coming back to us for operations and other downstream activities is very high. It is an excellent opportunity for us.  

The world's largest facility for testing and improving carbon capture technologies, Technology Centre Mongstad (TCM) uses our software for modelling and optimisation of carbon capturing facilities. There are other areas such as biofuels and EVs where a lot of companies are using our software for designing batteries.

Large IT companies are moving towards net zero data centres and using innovatively the energy that comes out to do carbon capture and separation. So, this expands our footprint. Again, a lot of automobile companies are using our software to test fuel cells. There is a lot of drive to use hydrogen for large locomotive solutions. We have been serving this industry for the last two decades and have served many companies in Japan.

Sustainability is not only driving the core verticals of oil & gas and chemicals but also the adjacent industries. And then hard to abate industries like steel and cement are looking into what they can do to the CO2 emissions from their flow gases. Carbon capture plays an important role here. So that’s moving into other industries that we haven’t traditionally served in the past.  

Coming back to the numbers, how do you see this market panning out in 2030? What would be the chemical percentage moving forward?

Dr. Vikas Dhole: There is going to be pretty aggressive investment by the chemical industry over the next ten years or so because the majority of these large players have committed to 50% reduction in greenhouse gas emissions by 2030. This is significant because they have factored in that they are going to grow over the next ten years and simultaneously reduce the 50% reduction in emissions. It means not just doing energy efficiency and emission reduction but making fundamental improvements in their Capex and process technology improvements. For example, ethylene manufacturers are looking into electrification of their furnaces to move from energy or heat-based fuel to renewable power. And, this changes the whole game. Hence, there are tremendous amounts of innovations happening in new process technologies in chemicals.

Manish Chawla: With the Emerson transactions that occurred a year ago, we now also have the Digital Grid Management software in our portfolio. Besides four big industrial verticals like chemicals, they will invest in micro grids as well. So, our ability to serve them not only with these three plays but also micro grid and electrification also become a key part.

Dr. Vikas Dhole: The proportion of investment into renewable power by the large chemical players is significant because it helps them to drive down CO2 and optimize the cost. But as soon as you increase the proportion of renewable power, you need to balance it with grid power. And if everybody goes for renewable power, how do you manage the large-scale electrical grid and variability of renewable power? This is where our Digital Grid Management solution plays an important role. 

In India, there are six to seven power cuts every month and the chemical industry suffers badly? How does your software support smooth flow of power for continuous and efficient working of processes?  

Dr. Vikas Dhole: Our software solution helps in managing the large power systems, taking into account the weather effects. It has the ability to predict what the demand is going to be based on weather forecasts - wind and solar. Based on that it can run the production. These capabilities are very important. On the customer side, we have the capabilities to optimize their utility system because there is heat and power being produced inside, for example steam in the chemical plants. So, we have optimized such systems and increasingly blurring the boundaries between captive heating power systems and the digital grid. This is where our Digital Grid Management solution plays an important role.

You talked about carbon capture, hydrogen, and bio-feedstock. Is AspenTech focusing on all these simultaneously or is it a phase wise approach? 

Dr. Vikas Dhole: You can achieve the 30% of your net zero goal by investing both in Opex and Capex through energy efficiency. Electrification is a big one and that can be additional 10-15%. So, there are technologies already in India where you could go up to 45% depending on where you are in terms of efficiency today.  

The next set of strategic technologies that is emerging rapidly, in terms of Capex, is the introduction of bio-feedstocks; carbon capture, utilization and storage (CCUS); green hydrogen and fundamental process improvements, which can help in achieving another 50%. This is the strategy our customers are following. If you look at the investment pattern, energy efficiency investment gives you returns and then you go for strategic investments to achieve the net zero target. Thirdly, the new innovations that are coming up such as the use of CO2 to manufacture new chemicals. Because if you just keep storing, it costs a lot of money but utilization offers a return on the CO2 investments. So, menthol processes or new types of chemicals are just a few examples.

Plastic circularity is a very active area of research across the globe. Many companies in India are a part of the alliance looking at ways to bring the recycled plastic back and strategies to decarbonize.

They are also trying to innovate new materials that can help carbon capture. We are very active in all these areas. A lot of small to medium companies in India and abroad are using our software to innovate in these areas.

Your presentation talked about co-innovation. Areas where you are co-innovating with customers and partners globally? Areas where you are looking to co-innovate from an India perspective? 

Dr. Vikas Dhole: There are a number of areas where we are co-innovating today with our customers such as grid management, electrification, emerging areas like hydrogen and carbon capture.  

As we develop models for the new technologies, we also want to validate these models. The newer solutions that are coming up, we want to quickly develop the models to cover those and that can happen only if we work together with our customers.  

So, we started establishing advisory groups and co-innovation partnerships with customers in the Middle East as well as in Europe. In India, we are looking towards partnerships in core areas because there is a lot of investment happening in emissions and electrification.

We believe we can really give value to the investments our customers have already made in modelling solutions related to planning and supply chain solutions. To give them a much more coherent approach on their investments and collaborate with them on carbon capture, hydrogen etc. so that it improves their reliability on the investments they are making.

Manish Chawla: In a few examples, the announcements of our collaboration with Microsoft and Emerson on hydrogen has been made. Another one has been made with Saudi Aramco on carbon capture. We are working with several of these companies such as McKinsey as well. We are constantly co-innovating and have moved to Europe also for many projects. We are helping customers on utilities and grid management.

Presently, sustainability is one business unit of AspenTech. How do you see it performing presently and what would be its contribution moving forward?  

Dr. Vikas Dhole: We are not reporting the revenue of the sustainability business unit as of now as it is at the early stage. The profitability and sustainability are intertwined. Our customers might provide the percentage breakup. In one of surveys, few customers have revealed that 30% of the activities around sustainability business has been using our tools. Part of our business unit’s focus is to really bring together the power of AspenTech’s portfolio.  

We have market driven solutions around supply chain, engineering solutions, and asset performance management that offer much more coherent digital pathways so that it drives efficiency and innovation acceleration for our customers. Hence, we win the majority of these Capex and Opex investments. We have been serving our customers for the last 40 years. In the longer run, we hope that we grow our percentage from 35% to 70%.

Balancing sustainability and innovation lead to profitability. How is AspenTech doing the balancing act on sustainability and profitability while offering solutions to the chemical industry?  

Fundamentally, what works in our favour is that these models are helping our customers to constantly optimise and when it comes to optimization, the same model that can be used for quantifying profitability can also be used for quantification of sustainability.  

So, our models have the capability to quantify the CO2, Scope 1, and Scope 2. As the optimization has become broader and now customers are also looking at Scope 1, Scope 2, carbon emissions, and all other contaminants, resulting in bigger collaborations. We initially developed modelling solutions for European customers but now it is available globally. We are increasingly moving towards collaborative models. The more complex it becomes, the more profitable it becomes for us because the modelling drives the best optimum decisions.  

How do you see the current DeepTech companies helping the industry to achieve the net zero?  

Dr Vikas Dhole: Artificial Intelligence (AI) is already playing a big role in our business. We can use industrial AI because the chemical industry has tremendous complexities with respect to safety and reliability of the assets and this is where our modelling and optimisation solution plays an important role.

We can accurately model these compounds and equipment as it has delivered the results over the last several decades. There are plants that are operating and so we don’t want to get rid of that first principal foundational base heritage.  

Our strategy is to use AI and some of the new technologies to scale the capabilities to reach larger user communities and new generations of users. We would like to make it easier for them and help solve bigger problems across enterprises, accelerate innovation etc. The ChatGPT kind of models are going to play an important role and depth of knowledge and expertise we have in our tools. So, imagine having a digital helper that sets the solution for you in face of any immediate challenge. We are looking at such models and quantum will play a huge role in this chemical industry in terms of search for new chemicals and technologies. This could create billions of dollars’ worth of value.  

The foundational strength in terms of the number of Engineers India has been transformative for the country. The number of patents, talent pool and innovation centres have increased. Every large chemical company is investing in India. The resource that the country is churning will make sure that India achieves the renewable targets and energy efficiency. India surely is poised to create a huge impact.

June 06, 2023

A key growth driver will also be Deepak Nitrite's state-of-the-art Research and Technology Centre which will combine its laboratories with world class scale up facilities that will double up as operations excellence initiatives

Major global trends in the chemicals sector and its implications on India?

India’s chemicals industry has been a global outperformer in demand growth and shareholder wealth creation for a decade. Its strong starting point could make it the next chemicals manufacturing hub. India’s infrastructure costs, across construction, material, and machinery, are up to 70% lower than other global chemicals manufacturing hubs. India’s material costs are 4.5 times lower versus Germany and 3 times lower versus Saudi Arabia.

Rising domestic consumption: India is expected to account for more than 20% of incremental global consumption of chemicals over the next two decades. Domestic demand is expected to rise from US $170 billion to US $180 billion in 2021 to US $850 billion to US $1,000 billion by 2040. The growing demand for bio-friendly products globally could benefit India, as it is among the leading producers of many chemicals that are used in such products.

Abundant availability in petrochemicals: India possesses abundant feedstock for higher carbon building blocks (C4, C6, and C8). Consequently, its combined surplus production of butadiene (C4) and benzene (C6). Allied companies are better suited to focus on products where feedstock is easily available in the merchant market.

Challenges: The Russia-Ukraine crisis continues to disrupt the global oil and essential chemicals availability. Hence, there is sustained volatility and fluctuation in crude and countries around the world have to evaluate new sourcing trades and patterns. While it has world class refining capacities, India remains unusually vulnerable due to its outsized dependence on crude oil imports.

With an eye on meeting the climate control and G20 challenges, the environmental regularity keeps eco-conscious responsible chemistry companies like Deepak Group to ensure our operations have no adverse impact on the environment. Global economies are unstable with Europe, China, and the US grappling with inflation and the consequent fluctuations in exchange rates challenge us to conduct smart hedging and fiscal management. 

This is a double-edged knife. While the western world has been seeking an option to de-risk from its dependency on China, India’s appetite for Chinese imports has been increasing every year including the last. In fact, one of the largest foreign account surpluses that China has is with India. Reducing dependency on China requires long term planning and infrastructure buildouts which must include material movement and storage to minimize the value leakage between production and consumption. 

Key milestones achieved by Deepak Group during FY 2022-23? Plans for FY 2023-24 and what are the growth drivers?

Deepak Group’s Phenol Acetone plant, the largest private investment in PCPIR region at Dahej, Gujarat achieved a milestone of 1 Million Metric Ton Phenol production in 4.5 years.

Our debottlenecking exercises at our plants of DNL in Dahej, Roha, TCD, Hyderabad and Nandesari Unit enabled us to expand the existing capacity. 

Many new projects were also initiated to significantly expand Deepak’s market share in existing product portfolios, upstream integration as well as new process platforms. FY24 will see some of these projects get commissioned with order books tied up in advance. 

A key growth driver will also be our state-of-the-art Research and Technology Centre which will combine its laboratories with world class scale up facilities that will double up as operations excellence initiatives. 

Initiatives for enhancing process safety across all processes to make operation intrinsically safe. How are you collaborating with business partners to imbibe ESG practices in their operations to ensure a sustainable supply chain? 

Deepak Group is working with key customers and third-party support to prioritize Scope 1 and Scope 2 initiatives for improvement in the carbon and water footprint at all its existing and forthcoming plants. These include yield improvement, multi fuel boilers, more efficient separation methods which use less energy and processes that improve atom efficiency. These will help catapult the company’s holistic ratings for ESG. 

Major CSR initiatives being undertaken by Deepak Group in FY2022-23 and plans for FY 2023-24?

Deepak Foundation, the CSR extension of Deepak Group, conducts a number of programmes focussed on education, healthcare, skill-development among women and infrastructure support, for the communities in villages around the plant sites. Deepak Foundation also offers NGO consultancy partnership and support to CSR projects supported by other companies.

 Deepak Group is partnering with the Central Government Mission to end TB by 2025. In this regard, we have launched ‘Nidaan’ mobile health van for sample collection and diagnostic services for TB, Anaemia, x-ray, and eye check-ups for free to communities in villages.

 To enable education for all, Deepak Group supports Sankul education centre for visually and physically challenged children at Vadodara. The centre also offers rehabilitation and palliative care to cancer patients.

 Vadodara Centre for Prevention of Cruelty to Animal, a hospital and rehabilitation centre for stray animals operates its facilities at Chapad, Vadodara, supported by Deepak Group which is also building new shelter rooms and operative services at the centre and started mobile-animal care clinic to offer rescue and treatment services at doorstep. 

 Empowering women by infusing entrepreneurial spirit, Deepak Foundation conducts Women empowerment training and handholding services like organic soaps and edible condiments manufacturing and sale. Aimed to support, sustain and revive the indigenous craft of ‘Sujni’, Deepak Foundation partners to support artisans and handicrafts at a centre in Bharuch.

June 04, 2023

Rieco Industries Ltd. is setting up a comprehensive team to support Industry 4.0 and other automation needs for our projects.

Major milestones achieved by Rieco during FY2022-23? Key targets set by the company for FY 2023-24?

Rieco has achieved record levels of order booking, both in international and domestic markets. Order growth of nearly 100% over last year and a substantial order backlog is a positive sign for us. The targets for this year will be to further accelerate by innovating, adding more solutions by investing in R&D, adding to our customer footprint and industries that we serve. One of the focus areas for Rieco would be to add more Industry 4.0 solutions which involves robotics, Artificial Intelligence/Machine Learning (AI/ML), etc. Through these product and solution level innovation, we will strive to be ahead of other players in the market.

Rieco recently bagged two large contracts worth Rs. 100 crores from the paint and petrochemical sector? Would you like to share the details? Key deliverables and timelines of the two projects?

In the first contract, we are overseeing construction and commissioning of paint raw material storage silos across three locations in India. The customer is making a big foray into the paints business and aims to challenge the market leader Asian Paints. In this construction of more than 80 silos with capacities up to 550 cubic meter, lot of critical technologies like tractor welding machines, auto beveling machines, and high capacity cranes of 500 T lift are being used. The deliveries have already started and it is expected to be completed by July 2023.

Secondly, we have been engaged by a Lithuania-based client who is a leading player in the oil and gas sector. Our scope of work for this project involves the supply of material handling systems to feed catalysts to the reactors. The demanding nature of industry and environment means that most equipment is being designed for operations at freezing temperatures of -35 degree centigrade. Additionally, they must be certified for safe operations in zone 21 and 22 and must confirm to CE/ATEX standards.

Being a leading player in powder and bulk solid technology, what have been your notable deployments in FY2022-23?

Apart from the two very large projects, we have several firsts and notable projects deployed. One is a very large size fluidized bed with diameters of 28 m for an aluminum storage silo. Then others involve complex material handling needs for wall putty (dry mortar) making and mixing plant for large paint players. We also got orders for ATEX rated equipment in which we are designing and constructing screw conveyors. 

How is the company leveraging its new facility in Ankleshwar and other facilities in Alandi and Chakan Phase 3? How have these facilities helped in capacity expansion for the company in terms of production?

All these plants have been equipped with both CNC high precision machines and also conventional manually operated machines. Through these, we can manufacture very high precision and quality equipments which are critical to the working of the integrated systems we design for our customers. Through these facilities, we have been able to witness better traction and confidence from our customers. Apart from direct addition to the revenue, there is a huge multiplier effect in our ability to get business.

Tell us more about your plans to add a fourth facility in FY 2023-24 in terms of Capex, location, and manufacturing?

Currently, the plans to add a fourth facility are under evaluation. Possible locations could be in Gujarat or Uttar Pradesh other than Pune. The exact numbers are still to be worked out, but the quantum of investments would range from Rs. 15-20 crore.

Objectives behind hiring 200+ new employees in the next 18 months? Expected outcomes and how will it drive the company's growth?

We are now 300+ already. We are a project-based company and with the robust inflow of orders, we also need to ramp up the employee resources to be able to fulfill the growing demand. The addition of human resources to our pool would increase our delivery capabilities, directly increasing the revenue.

Your revenues and profitability numbers during FY 2022-23? What is the forecast for FY 2023-24?

For FY 2023-24, we expect to have a revenue of Rs. 350 crore and EBITDA of around 11%. Our current year numbers are being audited so cannot disclose these now. 

How do you see the industry trends unveiling during the upcoming year and how is Rieco planning to leverage it in the long run?

Industry is moving towards adopting higher levels of automation and making the processes energy efficient. We are setting up a comprehensive team to support Industry 4.0 and other automation needs for our projects.

How has the company managed consistent technology upgrades to fulfill its customers’ evolving needs both nationally and internationally?

Technology upgrades are necessary, and we have added several new products and solutions to our portfolio. One of our successful products has been the Powtran which is a vacuum unloading system. Through these world class solutions we aim to serve the evolving needs of the customers.

June 03, 2023

What are the global trends in the Specialty Chemicals sector and its likely impact on Indian manufacturers?  

The Indian specialty chemicals industry is expected to register 15% growth annually. Foreign companies are shifting their manufacturing base to India, owing to the highly motivated creative workforce, huge pool of scientists and chemical engineers besides low labor and equipment cost. Indian companies must master the art of constantly developing and adopting new techniques and practices to tap the opportunities. In addition, India needs a modern regulatory framework that drives innovation and encourages growth and productivity. There is a need to promote innovation, better interactions between industry and academia and more chemical clusters. 

Most of the chemicals produced by the industry are commodity chemicals. Industry faces intense competition with international players on account of poor infrastructure, high capital cost, taxes, low economy of scale among others. Poor infrastructure, lack of storage facilities, poor road infrastructure, shortage of power and its costs deter the growth of the specialty chemical industry. At the same time, the advantages are price and raw material for specialty chemicals, innovation, and technology. Increasing the diversification of the product portfolio is extremely important for the industry to maintain competitiveness. It will require companies to invest heavily in R&D. To sustain themselves in the tough business environment, intensive research to produce innovative products is the key. 

Changing market dynamics within the Specialty Chemicals industry in FY 2023-24?  

Specialty chemicals are finding more application in the construction, automotive, electronics, and water treatment sector. These segments are most likely to drive the growth of the Indian specialty chemicals market. Therefore, upgrading the product quality through innovation and diversifying the product portfolio are extremely important for the industry to maintain the competitiveness and the overall momentum.  

Key milestones achieved by Sauradip Chemical Industries in FY 2022-23 and plans for FY 2023-24?   

Sauradip Chemical Industries was founded in 1974 with a philosophy of Care, Trust, and Bold Creativity, which have now become our core values. In the last 50 years, we have built unparalleled goodwill with our customers, suppliers, and our team.  

We are constantly raising the bar in the industry by developing highly customized green products in consultations with customers. Our efforts have been to make available green products to customers at an affordable price and we have been touching the lives of people across the globe. Today, we have a strong presence in India and are relatively exporting to five continents across 40 different countries. Our dedicated sales and marketing team is in constant touch with customers. They deliver high performance solutions and solve challenges across various industrial segments.  

Sauradip’s knowledge based and solution driven approach continues to improve and change the quality of life of Indians. We have been well recognized in the industry with many accolades.

Dr. Shah was president of the Indian Specialty Chemical Manufactures’ Association from 2007 to 2012. For the first time in 60 years, the Indian Specialty Chemicals Manufactures’ Association (ISCMA) awarded the life time achievement award to Dr. Kishore Shah on the occasion of their annual function in 2013. The award was bestowed to him by Rajubhai Schroff Chairman of United Prosperous Ltd, for meritorious service rendered to Indian Specialty Chemicals Manufactures’ Association. Dr. Shah wrote world class books (1) Handbook Synthetic Dyes & Pigments- 5 editions (2) Handbook of Industrial chemicals – 4 editions which are used as reference book throughout the world.

Please explain the product basket of the company?  

Sauradip is a manufacturer of customized performance chemicals and works closely with customers to offer them Tailor-made cost-effective solutions. We believe in the philosophy of “Sustainable Solutions for a greener planet so that we can make a positive impact in the lives of people Globally”.

We cater to customers for Water Treatment Chemicals, Paint & Coating Additives, Fiber Finish for Synthetic yarn, Additives for construction chemicals, Metalworking additives, Performance chemicals for Oil Exploration & Refining, Green surfactants for Home & Personal Care, Antistatic Agents for plastics & Coatings, High-performance Disinfectants for Industrial cleaning, Specialty chemicals for mining.

Revenue and profit during FY 2022-23 and forecast for FY 2023-24? Key growth drivers?    

We have been doing good in terms of revenue, registering a year on year growth of 25%. We are launching a lot of new products including paints and additives, green surfactant. We have recorded a revenue of Rs. 250 crore in the last fiscal and plan to reach Rs. 1,000 crore in the next 5-10 years. Our continuous efforts to improve the product basket and the green products will drive this growth. To increase exports, we are putting in place new distribution of networks. We are not importing anything yet we are exporting to the US, Australia, Africa, China, Russia, and other nations. 

Kindly elaborate on Sauradip's knowledge-based, solutions-driven approach to develop highly customised applications in collaboration with its customers?  

Sauradip's highly customized applications are developed in collaboration with their customers. Whenever a customer seeks a customized product based on his experience with some other products, we try to develop an alternative in the best possible time. We deliver performance improvements and solve challenges in a range of industrial sectors. Our customers include global leaders in paints and coatings, textiles, oil field exploration, personal care and cosmetics, dyes and pigments, adhesives, industrial cleaning, and plastics. Everyday, hundreds of millions of people enjoy a better quality of life, thanks to Sauradip's knowledge-based, solutions-driven approach.

Please take us through your key R&D initiatives and how it will help in expanding Specialty Chemicals product offerings?    

Research and Innovation has been Sauradips' focus and forte for the past forty years. The company has been spending 6-7% of its revenue on the R&D initiatives. Our hi-tech research facilities are home to highly qualified and skilled scientists who are constantly raising the bar in the industry by developing non-toxic, eco-friendly and high quality solutions. Sauradip's research helps clients manage costs, reduce environmental impact and manage volatility in production. Scientists and technicians at Sauradip are continuously looking for innovative solutions to increase the efficiency and competitiveness of manufacturers. A result of those efforts is the comprehensive range of antistatic agents and lubricants that lower the yarn to metal and fiber to fiber coefficient of friction with high speed spinning efficiency. 

How is the company striking a balance between environment-friendly policies and sustainable growth?  

Sauradip is a pioneer of green thinking in the performance chemicals sector. Proprietary green technologies mean Sauradip's manufacturing processes emit zero discharge and zero effluent. The products play a vital role in the green value chain by allowing its customers to deliver safer, less carbon intensive products to their consumers. We are developing a good number of green products each year. We scientifically design our products for human and environment safety, protecting mother earth and saving our resources such as energy, water and time. We have developed a concentrate through our unique technology for the paints industry to reduce the carbon footprint. In the personal and home care segment, we have innovated the non-toxic products, thereby replacing toxic ones with highly innovative green ones.   

CSR initiatives being spearheaded by Sauradip Chemical Industries in FY 2022-23 and plans for FY 2023-24? 

Sauradip has been at the forefront of many CSR initiatives. The company has donated to ICT - Institute of Chemical Technology for renovation of the BTech Undergraduate Laboratory in the Department of Polymer and Surface Engineering. The company has also introduced "Sauradip Chemical Industries Visiting Fellowship" in the Department of Polymer and Surface Engineering of ICT. We also took up the cause of building a Bhojanshala at Lonavala.  It has a 6,000 square feet hall and a 2,000 square feet kitchen area with a capacity of 300 people who can dine at a time, and was completed in February, 2022.